Thinking of buying a new home in the next year or two? You’re probably asking the question almost all homebuyers ask: How much is a down payment on a house? Saving up for a down payment can feel like a big mountain to climb. Developing a savings plan is key. Here are some tips from our partners at HomeAdvantage® to help you be ready to go when you find that dream home.
Find Out How Much House You Can Afford
There are a lot of things to consider when determining how much home you’re qualified to buy, what your monthly payments will look like, and how much money will be due at closing. A smart first step is to determine your target price range and start your home search with the right expectations. Salal Home Lending offers a Free HomeBuyer Planning Session to help you get prepared and know what to expect on your homebuying journey.
Break Out the Calculators
The HomeAdvantage® site has some great tools to help you visualize what your monthly payment will be and get a rough idea of how much you will need to have saved up for your down payment. Use the Affordability Calculator to get an estimate of how much home you can afford and how much your down payment might be, based on your income and the cost of the home you’re looking to buy. You can also use the Payment Calculator to estimate your monthly mortgage payments based on the term of your loan, loan amount, interest rate, and more.
Save, Save, Save
Once you’ve determined your budget, you’ll know what you need for a down payment. While this might seem daunting, here are some tried and true ways to get you into your new home sooner:
- Automate: Deposit a portion of your paycheck every month into a separate savings account to be used only for your down payment.
- Raises & Bonuses: Consider putting aside incremental earnings towards your down payment savings plan.
- Windfalls: Gifts, tax returns, inheritances are also perfect opportunities to build your down payment account.
- Keep the car, save the payment: Paid off your car? Resist the urge to buy a new one and instead save what you would have paid for your monthly payment.
Take Advantage of HomeAdvantage Cash Rewards*
When you use one of the trusted agents in the HomeAdvantage network to buy your new home, you can earn Cash Rewards—equal to 20% of your agent’s commission. You can earn even more Cash Rewards if you sell your current home through HomeAdvantage as well.
Want to Learn More?
If you have any questions or would like to get more information from a Salal Home Lending expert, feel free to reach out.
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All Salal loans are subject to credit approval. Property must be located within CA, ID, NV, OR, UT, or WA. Some restrictions may apply.
*The HomeAdvantage program is made available to members through a relationship between Salal Credit Union and HomeAdvantage. Cash Rewards are awarded through the HomeAdvantage program to buyers and sellers who select and use a real estate agent in the HomeAdvantage network. Home buyers or sellers are not eligible for Cash Rewards if they use an agent outside this network. Cash Rewards amounts are dependent on the commissions paid to the HomeAdvantage network agent. Obtaining a mortgage or use of any specific lending institution is not a requirement to earn Cash Rewards. If you are obtaining a mortgage, Salal Credit Union may have specific rules on how Cash Rewards can be paid out. Cash Rewards are available in most states; however, are void where prohibited by law or by Salal Credit Union. Please consult with your Salal Credit Union Mortgage Advisor for details that may affect you.